June 2, 2005 – Applied Materials Inc. has announced its intention to form a holding company in China and to enhance its operations and capabilities in the country. The application for Applied Materials (China) Holdings Ltd. is pending approval by Chinese government agencies.

The status of a ‘holding company’ allows foreign companies to act as local Chinese companies with greater flexibility in structuring corporate operations, providing a wider scope of services, and forming joint ventures. Applied Materials, saying that it was the first semiconductor equipment company to establish a presence in China in 1984, filed an application to establish a holding company in May in Shanghai.

“China is emerging as a key center of semiconductor manufacturing and the establishment of a holding company will provide Applied Materials with an additional vehicle for growth as the local industry expands in the decades ahead,” said Mike Splinter, president and CEO of Applied Materials.

Pending approval of Applied’s holding company application, Applied plans to open a Global Development Capability (G.D.C.) center in Xi’an that will provide engineering and software support services to worldwide Applied Materials locations.

Today, Applied Materials employs approximately 300 people in China, with offices in Shanghai, Beijing, Tianjin, Wuxi, and Suzhou.